5 Logistics Problems that can be Solved Using a 3PL Company

1. 5 Logistics Problems that can be Solved Using a 3PL Company If you run a business that requires shipping and transporting goods to customers, chances are you need to focus on product quality along with pleasant customer experience. Collaborating with different service providers for different processes can negatively impact the business, and managing all the logistics process such as distribution, packing and transportation all by yourself can be very intimidating. That's where Third-party logistics (3PL) can offer some assistance. Let's look at the most common challenges faced by the businesses in logistics and how a 3PL company can help in facing those challenges. 1. Space restrictions The basic nature of any retail, manufacturing or any other industry is that it will require space to store their products before they are removed for delivery. Goods need to be stored somewhere safe before they are moved further in the supply chain. Owning warehouses individually requires maintenance and labours which can be unaffordable for the small businessman. If your business is expanding more than the warehouse capacity, a 3PL company can provide you with long term solutions for warehousing and distribution to facilitate your business growth. 2. Labour Shortage Hiring and retaining the skilled workforce in the supply chain is among the biggest problem faced by businesses. More than 50% of the business owners find it difficult to manage the need of the staff to enhance customer satisfaction. You might find yourself unable in the process of recruitment, but a 3PL company has all the resources and skills required to recruit and retain the employees on your behalf. With the increasing expectations and customer demand, a 3PL company can help you to retain a dedicated team that can support you to ace the competition.

2. 3. Increased Volume of Orders With the increasing online shopping trends, businesses need to be on their toes by keeping most of the products in stock for online delivery. A sudden change in trend can lead to bulk orders at any time. Catering to these bulk orders requires increased investment for storage and packing. A right 3PL company can help to expand this online business by managing the huge order quantities and by successfully collaborating with various suppliers and vendors. 4. Lack of Transparency Increased demands and supply chain processes have made the logistics operation complex. Tracking the movement of goods and raw material without the help of any technology is nearly impossible. Having advanced software technology often results in the poor return of investment due to under usage of the various applications. A 3PL service provider can help a business to get the most out of the already installed technology by tracking the real-time status and requirements of goods and raw materials. 5. Unnecessary Costing Traditionally, a business should invest in warehouses, managing own fleet of vehicles, labour workforce. But in reality, a business can prevent all these unnecessary expenses by taking the services of a third-party logistics provider. Cutting down unnecessary expenditures can be the first step towards upgrading the business and concentrating on core activities of trading or manufacturing. It also protects the business from excessive loss due to shutting down of any division. Final Thoughts A 3PL company can accurately analyse the existing logistics operations and help you in cutting down the unnecessary costs and touchpoints. Using the above-analysed information they can recommend better options for an efficient work environment.